Sula Vineyards Ltd. reported its highest ever 'own brands' revenue in the second quarter of fiscal 2025, driven by the 'Elite & Premium' portfolio.
Revenue from wine tourism for the second quarter of fiscal 2025 though having risen marginally was the highest-ever at Rs 12.2 crore in the second quarter, as against Rs 12.1 crore for the same period last year.
However, the country's biggest winemaker generated muted revenue in the quarter ended September 2024 due to a broader slowdown in discretionary spending at the macroeconomic level.
Net revenue rose marginally to Rs 141.8 crore in the July-September quarter from Rs 143.7 crore over the same period a year ago.
The company also attributed "policy ambiguity in Karnataka" and significant issues with the Delhi Excise Portal in the last 15 days of the second quarter of fiscal 2025.
The Elite & Premium portfolio recorded high-single-digit growth.
The revenue generated from its own brands was Rs 127.2 crore for the second quarter, as against Rs 126.8 crore over the same period last year. The share of Elite & Premium increased to 80% during the same period from 74% recorded a year ago.
Its wine tourism business demonstrated resilience in the same quarter under consideration, recording its highest ever second quarter revenues. A 9% year-over-year increase in spend per guest and improved occupancy rates, despite lower footfall, led to this revenue. The occupancy rate improve to 74% from 66% in the second quarter of fiscal 2024.
Telangana, which was the company's third largest market, recorded strong double-digit growth in the quarter ended September 2024.
"The company is optimistic that these setbacks are temporary and will resolve in the coming months," the company said.
"Entering into the all-important third quarter, Sula is gearing up for the festive season and looks forward to hosting the much-awaited SulaFest at its Nashik vineyards," the company announced.
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